The LTR 1058 is functionally identical to the CP90. Same legal effect. Same deadline. Same consequences. The difference is formatting and the IRS function that generated it. The CP90 typically comes from the Automated Collection System. The LTR 1058 may come from a Revenue Officer or another collection function. The result is the same: the IRS intends to levy, and you have 30 days to request a Collection Due Process hearing.
Why You Received an LTR 1058
You owe a balance to the IRS and you haven't resolved it through the earlier collection notices. The IRS is required by law to send you this final notice before levying. It satisfies the requirement under IRC Section 6331(d) that the IRS give you at least 30 days' notice before levy action.
The letter identifies the tax periods involved, the amount owed, and the IRS's intent to levy. It also informs you of your right to request a hearing.
The 30-Day Window
You have 30 days from the date on the LTR 1058 to file Form 12153 requesting a CDP hearing. This is not a soft deadline. Filing on day 30 preserves all your rights. Filing on day 31 does not. The difference is not academic. It determines whether collection stops, whether you get an independent review, and whether you have access to Tax Court if things go sideways.
I've had clients walk in on day 28 with an LTR 1058. We filed the CDP request that afternoon. Two days later would have been too late. That's how tight this window is.
What Happens at the CDP Hearing
The hearing is conducted by a Settlement Officer in the IRS Office of Appeals. It's usually done by phone or correspondence, not in person. The Settlement Officer reviews the collection action, verifies that proper procedures were followed, and considers any collection alternatives you propose.
You can propose an installment agreement based on your ability to pay. You can submit an Offer in Compromise if you can demonstrate that the IRS can't collect the full amount within the remaining collection period. You can request Currently Not Collectible status if paying would leave you unable to meet basic living expenses. You can challenge the underlying liability if you never had a prior chance to dispute it.
The hearing gives you leverage. Appeals Officers have settlement authority. They can approve agreements that the collection function might have rejected. And while the hearing is pending, the IRS cannot levy.
Common Mistakes
The most expensive mistake is missing the 30-day deadline. The second most expensive is filing the CDP request without a strategy. Don't just check the box and send it in. Know what you're going to propose and have your financial documentation ready. Form 433-A (Collection Information Statement) should be completed accurately before or shortly after filing the request.
Another common mistake: calling the IRS and negotiating an installment agreement over the phone instead of filing the CDP request. If the agreement defaults later, you've burned your CDP rights for those tax periods. File the CDP request first, then negotiate through Appeals.
Act Now
If you're holding an LTR 1058, the clock is running. Every day you wait is a day closer to losing your hearing rights. Get the CDP request filed, get your financials together, and get professional help.
Call us at (813) 229-7100. We handle CDP hearings regularly and we know how to use them.